Armenia's economy to get next blow

Western sanctions on Russia, due-to its interference in Ukraine's crisis will have negative impacts on Armenia's economy.

Armenia's small economy strongly depends on Russia's economy. Now the country is facing negative consequences of economic processes underway in Russia.

Russia has a leading position among countries with economic relations with Armenia. The Armenian migrants in Russia transfer large amount of cash money to their families in Armenia.

Russia is the main destination for the Armenian migrants. Around 503,000 Armenian citizens were in Russia by the end of May.

Russia's share in Armenia's cash transfers was 81 percent in January-May 2014. This makes Armenia's economy more dependent on Russia.

Local media reported that Armenian government's promise to diversify countries where the Armenian migrants could find a job still remains an empty one.

Instead the government is creating favorable conditions for labor migrants. Armenia and Russia recently signed an agreement which exempts Armenia's citizens from registering their resident places within 30 days instead of seven days. This will provide a favorable condition for the citizens of Armenia, including labor migrants.

The Armenian experts said the economic situation is deteriorating due to strong independence on Russia. They noted that the unpleasant tendencies will lead to significant economic slowdown by the end of 2014.